Canadian Forex Midday: C$ Higher With Oil

By Commodity News Service Canada

Winnipeg, January 30 – The Canadian dollar was higher against its American counterpart at midday Tuesday, as newly found strength in crude oil boosted values.

The loonie was at US$0.8045 or US$1 = C$1.2430 at 11:45 CST Tuesday morning.

Investors are hoping the worst is over in the crude oil price plunge and that a bottom has been reached. Oil prices are up 10 percent over the past two sessions on the heels of a report that found a large drop in the number of US drilling rigs.

Many oil companies have also scaled back their expansion plans and drilling programs in several locations. Capital spending is also down.

US home values inched along to the tune of five percent in December. That was down from the 5.5 percent mark reached in November.

On the commodity markets the March copper contract leaped seven cents to US$2.56 a pound. The March crude contract in New York was up US$1.52 at US$51.09 a barrel. The April gold contract plunged US$18.50 to US$1,258.40 an ounce.

At 11:50 CST Tuesday morning, the Toronto Stock Exchange was up 162.84 points to 15,063.31.